Select all that apply The current ratio measures a company's: \( \square \) short-term liquidity. \( \square \) total liabilities. \( \square \) ability to pay in the upcoming year. \( \square \) total assets to liabilities. \( \square \) total assets

The **current ratio** is a financial metric that assesses a company's ability to pay its short-term obligations with its short-term assets. Based on the options provided, the following apply: - **☑ Short-term liquidity.** The current ratio directly measures a company's short-term liquidity by comparing current assets to current liabilities. - **☑ Ability to pay in the upcoming year.** It indicates whether a company has enough resources to cover its liabilities within the next twelve months. The other options do **not** accurately describe what the current ratio measures: - **☐ Total liabilities.** The current ratio focuses on **current liabilities**, not total liabilities. - **☐ Total assets to liabilities.** This describes the **debt ratio**, not the current ratio. - **☐ Total assets.** The current ratio specifically looks at **current assets**, not total assets. **Summary of Correct Selections:** 1. Short-term liquidity. 2. Ability to pay in the upcoming year.